Title Bản sao của ross12e_chapter01_tb_answerkey.docx ✅

1 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Corporate Finance, 12e (Ross) Chapter 1 Introduction to Corporate Finance 1) The treasurer and the controller of a corporation generally report to the: A) board of directors. B) chairman of the board. C) chief executive officer. D) president. E) chief financial officer. Answer: E Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Management organization and roles Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) Which one of the following statements correctly depicts the common chain of command in a corporation? A) The information systems manager reports to the treasurer. B) The credit manager reports to the treasurer. C) The controller reports to the chief executive officer. D) The tax manager reports to the treasurer. E) The capital expenditures manager reports to the controller. Answer: B Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Management organization and roles Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation

3 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6) The corporate treasurer oversees which one of these areas? A) Financial planning B) Cost accounting C) Tax reporting D) Information systems E) Financial accounting Answer: A Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Management organization and roles Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 7) A firm's capital structure refers to the firm's: A) mixture of various types of production equipment. B) investment selections for its excess cash reserves. C) combination of cash and cash equivalents. D) combination of accounts appearing on the left side of its balance sheet. E) proportions of financing from current and long-term debt and equity. Answer: E Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Capital structure Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 8) Short-term finance deals with: A) the timing of cash flows. B) acquiring and selling fixed assets. C) financing long-term projects. D) capital budgeting. E) issuing additional shares of common stock. Answer: A Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Cash management - general Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation
4 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9) Which one of these accounts is included in net working capital? A) Copyright B) Manufacturing equipment C) Common stock D) Long-term debt E) Inventory Answer: E Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Net working capital Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10) The process of planning and managing a firm's long-term assets is called: A) working capital management. B) cash management. C) cost accounting management. D) capital budgeting. E) capital structure management. Answer: D Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Capital budgeting Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 11) Any debt that must be repaid within the next year is recorded on the balance sheet as: A) a current liability. B) long-term debt. C) an intangible asset. D) accounts receivable. E) a current asset. Answer: A Difficulty: 1 Easy Section: 1.1 What is Corporate Finance? Topic: Balance sheet Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation